Jack, I added those yellow boxes to the chart. Btw. that's a five minute chart of the K200 that polford posted before. It is only the beginning of the day zoomed in because it allows to better focus on specific areas. You say "treat bars that are internals as one bar". Reading it most people would think "Aahh.. no problem. I understand." But if you think about it, what does it REALLY mean? Does it have a meaning to the trend lines you draw? Like for example draw the trend line from the last bar of the yellow box. Or draw it from the first bar of the box? Or maybe it means nothing at all to trend lines? What about volume? What does "treat it as one bar" mean to the gaussian lines you draw? Do you for example treat the first bar of a Sym as a peak and the internal bar volume as a through? Or do you just ignore the volume of the internal bar of that sym? Such a simple statement but in fact very tricky if you don't know what exactly it means and why you would do it anyway. You also said "see how they overlap". Well... they only seldom overlap. Is that important? For the moment I will wait with the next part of that chart until I'm sure I have the basics covered in this part of the chart. Thanks.
You post is very cool. you cover the thought process involved when a pair of bars is merged to become one equivalent bar. This ten minute period perfoms as a single 5 minute bar. This makes the time pass half as fast in terms of the order of events unfolding. We can look at the characteristics of a bar. It has four values commonly used to define its parameters: O, H, L, C. When an internal pair is considered they behave as one bar having its O, H, L and C. Drill 1. Look at the cases and set up a rules set for determining the O, H,L and C for each case. 2. Go through 100 internals as find the O, H, L and C for each of the 100 internals. 3. repeat 2. and include the OHLC in the fast fractal pattern annotation. 4. review the Wait decision characteristics of D of MADA with respect to the100 internal applications in the fast fractal. 5. review the Hold decision characteristics of D of mada with respect to the 100 applications in the fast frctal. 6. Use the volatility PACE matrix to locate where the various cases occur by using a print of the matrix to shade each case for 50 examples of each case. Do not mix cases when you are shading. Use a separate sheet for each case and date and intial it with the period of days that were used to get the shaded region. 7. analyze each sheet using a separate analysis sheet. Note how you recorded the second and following occurrances in each cell. 8. use excel to produce a 3d distribution of the data results. 9. code up an ATS to do 1600 bars of the process of drills 6. 7. and 8. 10. repeat steps 6, 7, 8, and 9 for the overlap PACE matrix. 11. compare the basic 1600 bar matricies with the set of internal matricies you have determined. 12. determine from all of the above how translation in the patterns on all three fractals plays a role to make money. Later we will build additional information characterisitcs to begin to define how making money works in these periods of time (internals OR transalation. What you learn from this brief effort is that trading is a smooth operation and there is plenty of time to get the job of MADA done. you probably also noice there is no noise in trading during the time of internals or taimes of translation. where does noise go if it is part of a person mind's inference? Nowhere. But the noise cponcept os more and more blocked as a possible concept involved in market analysis. reread the Lo pattern research paper. notice the intial intellectual error made there. Hi lite the name of the math analysis used to eliminate ONE THIRD of the total bars examined BEFORE pattern analysis was examined. Notice there is no explanation of the "gaps" in price that occurred as a result of the intellectual error. finally note that your work on the cases and the illustrations that result, far surpass the work being done at MIT using probabilistics types of mathematics. Also note the impact of the PACE/ volatility matrix on talontrader's thread. He suggested that he would look at the illustration given to him by taking a week to review it. What happens when a propabilitsitic oriented person "gets the message" of the relationship of Pace and volatility? In games sometimes there are penalties; the penalty here is called going back to square one. The conclusion that is reached when the 10 formations examined by Lo are reviewed interms of cases and patterns in nested fractals is that all formations can be described in terms of the PATTERN in which the cases are located and handled. Corrolary: Zero noise filtering is ever required in formation analysis. So in this thread we step out to the cutting edge of market analysis and use a comprehensive paradigm for that analysis. PVT has a sharpe ratio of over 60, for example. The SCT sharpe ratio is greater. We will use a multiple of the ATR to characterize trading SCT under various market contexts. This is an example of how the whatm where, why, when and how of the markets and the trader's built inference is introduced. All of this gives the trader theability to read and sort through the financial research of the industry and academia. A lot of the government funding comes from places like NSF. the people who doill out the grant appear to be totally in the dark as we will be begin to see by this deductive process of learning here. Do not worry about the initial challenge of combining two bars when an internal occurs. as you see drills make it an automatic and permanent long term memory process. readers of this thread should try to capture the meaning of being earnest. This is to trading as the Mars Rover is to the research teams here in Tucson. Of coure we have dune and desert buggies here to play with. Adjacent bars are coming into view. there are only 9 cases. Just nine cases. we only have one pattern to deal with. the fractals are nested and interlocking. we have MADA to replace OODA to get probability and betting off thepicture. there are no longer targets and stop requirements. what is left is to delve into acceleration, extension and fanning.
Thanks for doing the maintenance on your display. I appreciate it. we want to keep taking little things off the table so we can bear down as earnestly as possible.
see if you can convert this to a file that is usable on paint or explain to me how I can make use of it in paint. A pdf file is sort of hard to handle and put into folders that are related to things like pictures and illustrations. I just have to ask at this point, do you have a colored printer? I wanted to explain to you in detail the first eight bars in teermsof graphics. The pdf file is a handicap for me to overcome. I want to move ahead as soon as we uncover the missing understanding of the rudiments of how displays contain information. i will snag other charts from other people if you have reservations about your charts being used in paint.
Paint? Ouch... Here is the file again as PNG. In this version after I read your last post I added the dashed gaussian lines. That's what my mind created of that post. The others where there in my first version.
I will work on using charts from other threads. This is a series of posts showing how annotating works. I begin at an arbitrary place to be able to nail down acceration and fanning in one series of bars. Below you see three bars used to obtain two moves on the observable fast fractal. the line wirght is fine and it is colored according to the movement. we are looking for the third movement on the fast fractal. You can see that points 1, 2, and 3 are there for the trading fractal.